K-V Pharmaceutical Company Announces The Completion Of The Sale Of Nesher Pharmaceuticals, Inc. Its Generic Pharmaceutical Business
ST. LOUIS, Aug. 8, 2011 /PRNewswire/ -- K-V Pharmaceutical Company ("the Company," "K-V") (NYSE: KVa/KVb) today announced the completion and closing of the previously announced sale of assets of Nesher Pharmaceuticals, Inc. ("Nesher"), the Company's wholly-owned generic subsidiary, and the Company's generic business and assets to Zydus Pharmaceuticals ( USA), Inc and Zynesher Pharmaceuticals ( USA) LLC (together, the "Buyer").
The aggregate sales price for the transaction is $60 million (subject to possible adjustment to reflect the working capital of the business unit at closing) of which $7.5 million will be held in an escrow arrangement for post-closing indemnification purposes. The purchase includes the physical assets associated with the Company's generic business, including certain manufacturing, packaging and laboratory facilities, certain intellectual property, existing and future product opportunities, as well as equipment specific to the generic business.
Separately, the Company has entered into a supply agreement with Zydus Pharmaceuticals, Inc. to provide third-party manufacturing services for Clindesse® and Gynazole-1®.
Greg Divis, the Company's Chief Executive Officer and President of Ther-Rx Corporation, stated, "This divestiture is in-line with our announced efforts to focus our future product roadmap in the specialty branded pharmaceutical sector. The net proceeds from the transaction will strengthen our financial position and liquidity, while exiting the generics business will immediately reduce our quarterly cash outlays. Moving forward, we will continue working towards making important progress with Makena™, returning our branded anti-infective products back to market and supporting additional growth potential for Evamist™."About K-V Pharmaceutical Company K-V Pharmaceutical Company is a specialty branded pharmaceutical company with a primary focus in the area of women's healthcare. As such, we are committed to advancing the health of women across all the stages of their lives.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV